2 May 2014
Plenty of room for Gold specs to build shorts - TDS
FXStreet (Bali) - Bart Melek, FX Strategist at TDS, notes that there is plenty of room for Gold specs to grow new short positions again should US economic data improve.
Key Quotes
"In our view there is plenty of room to grow shorts, which implies lots of downside pressure should economic data start looking good. The next set of technical points of interest lie near USD1,268/oz, USD1,255/oz, with USD1,181/oz if the US economy is seen gathering steam."
"If the Fed should moderate its dovish tilt on its monetary policy rhetoric, gold could move materially lower still. While we no doubt will go up and down, we must remember that roller-coasters do, in the end, get us to the ground."
Key Quotes
"In our view there is plenty of room to grow shorts, which implies lots of downside pressure should economic data start looking good. The next set of technical points of interest lie near USD1,268/oz, USD1,255/oz, with USD1,181/oz if the US economy is seen gathering steam."
"If the Fed should moderate its dovish tilt on its monetary policy rhetoric, gold could move materially lower still. While we no doubt will go up and down, we must remember that roller-coasters do, in the end, get us to the ground."